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RTEA Laos PDR Background Papers

To inform the Rapid Trade and Environment Assessment for Lao PDR, seven background papers covering nine key economic sectors were commissioned by the RTEA Expert Advisory Panel, a body consisting of key government and private sector stakeholders established to provide overall guidance to the assessment process. These papers provided vital background information and illuminated key sector-specific policy recommendations for the main assessment and are seen as a valuable contribution to the growing body of in-country research focusing on the complex dynamics between trade and the environment in Lao PDR.

This research exercise was coordinated by the Science, Technology and Environment Agency and IUCN – The World Conservation Union in Lao PDR. Papers edited by Sabrina Shaw (IISD) and Tom Callander (IUCN).

• Environmental Impacts of Trade Liberalization in the Wood and Wood Products Sector of the Lao PDR
  English (PDF - 821 kb) - Lao (PDF - 896 kb) » Sousath Sayakoummane and Vongxay Manivong, Department of Forestry, Ministry of Agriculture and Forestry, Lao PDR, December 2007 The wood and wood products sector in Lao PDR is undergoing significant transformation. In the wake of increasing demand for wood resources, declining natural forests, low-value exports and illegal trade, the Government of Lao PDR has implemented a number of reforms to address these issues. This paper examines the environmental impacts of trade liberalization on the wood and processed wood products sector, focusing on the wood-processing industry and its supply of wood from natural and plantation forests.

• Environmental Impacts of Trade Liberalization in the Silk Handicrafts Sector of the Lao PDR
  English (PDF - 760 kb) - Lao (PDF - 775 kb) » Mr Somphong Soulivanh, Department of Industry, Ministry of Industry and Commerce, Lao PDR, December 2007 Demand for Lao’s naturally dyed and often handmade silk products is growing steadily and providing key export earnings and potential opportunities for domestic producers. This paper examines the environmental impacts of this growth sector and finds an inherently environmentally-friendly industry with the potential to avoid negative impacts and capture the potential of green markets.

• Environmental Impacts of Trade Liberalization in the Tourism Sector of the Lao PDR
  English (PDF - 771 kb) - Lao (PDF - 832 kb) » Sounh Manivong and Somxay Sipaaseuth, National Tourism Administration, Lao PDR, December 2007 The development of the tourism industry in Lao PDR over the last two decades has been striking. In 1990, just over 14,000 people visited the country. In 2006, arrival numbers stood at 1.21 million and generated 173.2 million dollars for the Lao PDR economy. This paper seeks to identify some of the key impacts, both positive and negative, of this sector and outline strategic policy recommendations to ensure this increase in business for Lao PDR results in a sustainable industry that enhances the surrounding environment.

• Environmental Impacts of Trade Liberalization in the Organic Agriculture Sector of the Lao PDR
  English (PDF - 776 kb) - Lao (PDF - 790 kb) » Phengkhouane Manivong, Faculty of Agriculture, National University of Lao PDR, December 2007 Lao PDR has only recently penetrated the organic agricultural products market. Export performance is still underdeveloped. Not enough goods are produced to meet the demand. Non-tariff barriers such as certification remain a major hurdle. This paper explores the potential environmental impact of this sector and finds an inherently environmentally-friendly industry with the potential to grow and prosper in the future.

• Environmental Impacts of Trade Liberalization in the Medicinal Plants and Spices Sector of the Lao PDR
  English (PDF - 1.3 mb) - Lao (PDF - 1.3 mb) » Kongmany Sydara, Traditional Medicine Research Centre, Ministry of Health, Lao PDR, December 2007 Regional demand for Lao PDR’s medicinal plants is rising significantly. And while this is presenting opportunities for economic growth, it is also placing increasing pressure on the country’s natural resource base. This paper provides a commentary on some of the key environmental concerns in this sector and presents case studies on the production and use of medicinal plants in Lao PDR to illustrate positive and negative practices in the industry, including suggestions for the future.

• Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR
  English (PDF - 756 kb) - Lao (PDF - 776 kb) » Mr Phaychith Sengmany, National Council of Sciences, Lao PDR, December 2007 Lao relies heavily on the import of oil. A switch to locally-produced biofuel sources may not only help alleviate that dependency, but also provide a new economic opportunity for Lao PDR. This paper provides an overview of the bio-diesel sector in light of increasing trade liberalization between Lao PDR and its key trade partners. It seeks to explore the environmental issues, both positive and negative, surrounding the trade liberalization of the bio-diesel sector, while also flagging key environmental factors to be considered in trade negotiations.

• Environmental Impacts of Trade Liberalization in the Hydropower, Mining and Construction Material Sectors of Lao PDR
  English (PDF - 850 kb) - Lao (PDF - 911 kb) » Tom Callander, IUCN – The World Conservation Union, December 2007 In Lao PDR, investment has been booming in the industrial sectors of mining, hydropower and construction materials with actual Foreign Direct Investment (FDI) more than doubling between 2004 and 2006. This paper provides a preliminary commentary on the key environmental concerns of these three sectors and examines both positive and negative environmental impacts that may arise as a result of increased trade and investment, combined with inadequate policies and standards to monitor these activities.

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